SunOpta Inc. has announced that it will expand the distribution of its Dream Oatmilk Barista product to an additional 6,700 locations across North America starting in January 2025. The expansion is part of a partnership with an unnamed large coffee chain. While SunOpta has not officially disclosed the partner, investment firm DA Davidson has suggested that Starbucks is likely the partner, according to a report by TipRanks.
Following the announcement, SunOpta’s stock saw a 4.4% increase, rising to CAD 8.62 ($6.32 USD) at the time of writing, according to MarketWatch.
The increase in distribution will take advantage of SunOpta’s existing manufacturing infrastructure, including its oat extraction facility in Modesto, California, and a production site in Midlothian, Texas. Both facilities are expected to support the larger production volumes required by the partnership.
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Brian Kocher, CEO of SunOpta, commented on the expansion: “We’re incredibly proud to supply our customers with plant-based beverage options, including our Dream Oatmilk Barista. We understand that every single impression for a barista and a coffee lover is precious. We offer delicious plant-based alternatives while striving to create a perfect experience.”
Barista-focused
The Dream Oatmilk Barista product, currently not available in retail stores, is one of several barista-focused plant-based offerings from SunOpta, which also produces almond and coconut milk blends designed for coffee applications.
For more than five decades, SunOpta has emphasized reducing its environmental impact, which it achieves through a nationwide manufacturing network and the use of recyclable packaging. These measures help reduce the distance products travel, lower costs for customers, and cut down on packaging waste. Kocher continued, “We are committed to a more sustainable future by working to reduce water, packaging, and carbon emissions.”
Strategic importance
As reported by Investing.com, DA Davidson has noted the importance of this expansion, citing two key reasons. First, it validates the effectiveness of SunOpta’s business development pipeline, which has been a driving factor in its 2024 performance. Second, it is expected to increase investor confidence for fiscal year 2025 as the benefits of the broader distribution take effect.
In its most recent financial report, covering the second quarter of 2024, SunOpta reported a 21% increase in revenue from continuing operations, reaching $171 million. This growth was primarily fueled by a 26.9% increase in volume. The company expects that the expanded reach of its oatmilk products will continue to support its positive financial trajectory.
